x Abu Dhabi, UAEMonday 24 July 2017

Dubai's DFM Company rises on outlook

Markets Wrap: Dubai Financial Market Company advanced the most in more than two months amid expectations that higher trading volumes over the last quarter of the year will improve the company's financial health.

DFM's shares jumped 3.6 per cent to Dh1.02. Jeff Topping / The National
DFM's shares jumped 3.6 per cent to Dh1.02. Jeff Topping / The National

Dubai Financial Market Company, the only stock market in the region to sell its shares to the public, advanced the most in more than two months amid expectations that higher trading volumes over the last quarter of the year will improve the company's financial health.

DFM's shares jumped 3.6 per cent, the most since October 7, to Dh1.02.

"The volume has been rising in the past week, with more than Dh190 million traded today," said Nabil Farhat, a partner at Al Fajer Securities in Abu Dhabi.

"Investors are expecting earnings will be better than the previous quarter and the company will soon return to profitability."

DFM has struggled to remain in profitability since the onset of the global financial crisis.

The emirate's bourses are set to complete the year with almost Dh70 billion worth of shares traded up , from Dh57bn last year.

The Dubai Financial Market General Index rose 0.4 per cent to 1,610.84. The benchmark has risen 19 per cent so far this year.

Banking stocks lifted the Abu Dhabi Securities Exchange General Index higher.

First Gulf Bank gained 1.7 per cent to Dh11.45. Abu Dhabi Commercial Bank gained 1 per cent to Dh3. The ADX General Index closed 0.2 per cent higher to 2,625.51. The index has risen 11.6 per cent since January.

Trading on the Abu Dhabi Securities Exchange and Dubai Financial Market will halt on January 1 and will resume on January 2 to celebrate the new year.

 

halsayegh@thenational.ae